29 Sep
Member News

Marks Paneth | Reminder: New York Pass-Through Entity Tax Elections Are Due October 15, 2021

The election to participate in the New York State Pass-Through Entity Tax (PTET) for the 2021 tax year is due by October 15, 2021.

Earlier this year, the New York State Legislature enacted a new PTET that may provide individual investors in partnerships and S corporations with a valuable federal income tax benefit. Please see our previous guidance on that subject here.

An authorized person can elect into the PTET on behalf of an eligible entity through the entity’s New York State Business Online Services account. If the entity does not have a Business Online Services account, the authorized person will need to create one to file the annual PTET election online. It should be noted that tax professionals and advisors may not make the PTET election on behalf of their clients.

For partnerships, the election must be made by an individual partner, member or other person who is authorized to bind the entity. For S Corporations, the election is made by a corporate officer, shareholder or manager who is authorized to bind the entity.

To file the online annual PTET election:

  1. Log in to the eligible entity’s New York State Business Online Services account.
  • If the entity does not currently have a New York State Business Online Services account, the authorized person of the entity will need to create an account at this website.
  1. Once you have logged into the Business Online Services account, select the ≡ Services  menu in the upper-left corner of the Account Summary  homepage.
  2. Depending on the type of entity for which you are making the election, select Corporation tax  or Partnership tax,  then select PTET web file  from the expanded menu
  3. On the Form Selection  page, select Pass-Through Entity Tax (PTET) Annual Election.
  4. Once the annual election form is filled out, the authorized person must electronically sign and attest to having the entity’s authorization to file the election.

It should be noted that if an electing entity has more than one tax year within a calendar year, it is permitted to make only one election during each calendar year.

As is mentioned above, the election must be filed no later than October 15, 2021, to be effective for the current calendar year. Due to the possibility of technical issues in setting up a Business Online Services account and/or making the PTET election, Marks Paneth LLP recommends that businesses wanting to make the election do so well in advance of the deadline. Businesses that do encounter problems in setting up an account or making an election will need to call the New York Department of Taxation and Finance to resolve them.

Contacts:

Compliments of Marks Paneth LLP – a member of the EACCNY.